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Principal Funds Class B Shares Closing Effective 3/1/2010
Class B shares of Principal Funds, Inc. (PFI) will be closed to new or additional purchases by existing shareholders effective March 1, 2010. No new accounts or subsequent purchases into Class B shares will be accepted after the close of business on February 26, 2010. This decision was made by Principal Funds management based on the decline in B shares sales and is consistent with an overall shift away from the use of Class B shares within the industry.
If you currently own any existing Class B shares, those shares will be converted to Class A according to their current conversion schedule based on the date of your purchases. Exchanges and dividend reinvestments within B share funds will still be allowed. Please refer to the Principal Funds prospectus for more information.
What does this mean to shareholders?
Nothing is required of shareholders of Class B shares at this time. However, shareholders holding their Class B share investments directly with Principal Funds who participate in any of the following account options will need to provide alternative investment instructions prior to any purchases occurring after February 26, 2010:
- An Automatic Investment Plan (AIP) into Class B shares.
- Participation in an employer payroll deduction plan (e.g., SEP IRA or Simple IRA).
- An automatic exchange from Class A shares of the Principal Money Market Fund to any Class B fund.
The changes may be made by you or your financial representative. If changes are not made, any automated or payroll deduction purchases will be redirected into Class A shares of the same fund.
The redemption of Class B shares prior to their established conversion schedule may trigger a taxable event and may be subject to a Contingent Deferred Sales Charge (CDSC). Shareholders should be advised to consult their tax advisor prior to taking any action.
Up-front sales charges may apply.
Questions
For more information about this change, please call our Client Contact Center at 800-222-5852 (Monday-Friday from 7:00 a.m. to 7:00 p.m. Central Time).
To obtain a Prospectus, call Customer Service at 800-222-5852.
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To obtain a prospectus, download online or call Customer Service at 1.800.222.5852
While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal® is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. For more information about our funds, including their full names, please see the Principal Funds, Inc. prospectus or call Customer Service at 1.800.222.5852.
A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.
This Web site was created and is maintained by Principal Funds Distributor, Inc. exclusively, and not by the Directors of the funds.
Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc., member of the Principal Financial Group®. Principal Funds Distributor, Principal Shareholder Services, Principal Management Corporation and its affiliates, and Principal Funds, Inc. are collectively referred to as Principal Funds.
Not FDIC or NCUA/NCUSIF insured - May lose value - No bank guarantee - Not a deposit - Not insured by any federal government agency
